Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Swedish investors cleared to buy Carter Holt dairy farms

Swedish investors cleared to buy Carter Holt dairy farms

By Paul McBeth

Jan. 31 (BusinessDesk) - An unnamed Swedish institution has been cleared to buy eight Waikato dairy farms from local billionaire Graeme Hart's Carter Holt Harvey by the Overseas Investment Office.

Southern Pastures Limited Partnership was given a green light to buy 3,205 hectares of land in December for an undisclosed sum, according to a decision summary published today. The farms have been for sale since 2010, when Carter Holt put 29 farms of converted forestry land up for sale, asking $224.5 million.

The entity is 99 percent owned by a Swedish institutional investor and 1 percent owned by Southern Pastures Management, the LP's general partner which will operate the farms, spokesman Cedric Allan told BusinessDesk. The structure of the fund lets institutional investors get direct exposure to local farms, which are operated by the local manager.

Southern Pastures Management is headed by dairy farmer and former All Black captain Graham Mourie.

The dairy group plans to bolster production through increased capital expenditure, sound farming practices and good management, according to the summary decision.

The local group has no plans to get into milk processing, and will continue to supply Fonterra Cooperative Group, Allan said. He declined to comment on production targets.

As part of the purchase, there is forestry land that still needs to be converted, providing instant opportunities for Southern Pastures to improve its production, Allan said.

Foreign investment in farmland, particularly by the Chinese, has been a point of contention in recent years, and ultimately led to tighter controls on the sale of farmland. That's seen two Chinese milk players, Yashili International and Inner Mongolia Yili Industrial, put their efforts toward securing processing facilities in New Zealand.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news